Unintended tightening ‘to hit Italy’s growth’

The Italian government’s economic growth expectations are likely to take a hit from “unintended tightening” of monetary policy if BTP yields keep rising, investors have warned.

By Craig McGlashan

10 Oct 2018

BTPs had another day of turmoil on Tuesday, with the 10 year spread over Bunds closing 11.1bp tighter at 292.8bp — but at one point having been around 30bp higher. The populist government’s budget deficit plans and the European Commission’s belief that they are too profligate, along with
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